H.B. No. 1133
 
 
 
 
AN ACT
  relating to a sales and use tax refund for tangible personal
  property used to provide cable television service, Internet access
  service, or telecommunications services and to the exclusion of
  that property in certain economic development agreements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
  by adding Section 151.3186 to read as follows:
         Sec. 151.3186.  PROPERTY USED IN CABLE TELEVISION, INTERNET
  ACCESS, OR TELECOMMUNICATIONS SERVICES. (a) In this section,
  "provider" means a provider of cable television service, Internet
  access service, or telecommunications services.
         (b)  A provider is entitled to a refund of the tax imposed by
  this chapter on the sale, lease, or rental or storage, use, or other
  consumption of tangible personal property if:
               (1)  the property is sold, leased, or rented to or
  stored, used, or consumed by a provider or a subsidiary of a
  provider; and
               (2)  the property is directly used or consumed by the
  provider or subsidiary described by Subdivision (1) in or during:
                     (A)  the distribution of cable television
  service;
                     (B)  the provision of Internet access service; or
                     (C)  the transmission, conveyance, routing, or
  reception of telecommunications services.
         (c)  Notwithstanding Subsection (b), property directly used
  or consumed in or during the provision, creation, or production of a
  data processing service or information service is not eligible for
  a refund under this section.
         (d)  The amount of the refund to which a provider or
  subsidiary, as described by Subsection (b)(1), is entitled under
  this section for a calendar year is equal to:
               (1)  the amount of the tax paid by the provider or
  subsidiary during the calendar year on property eligible for a
  refund under this section, if the total amount of tax paid by all
  providers and subsidiaries described by Subsection (b)(1) that are
  eligible for a refund under this section is not more than $50
  million for the calendar year; or
               (2)  a pro rata share of $50 million, if the total
  amount of tax paid by all providers and subsidiaries described by
  Subsection (b)(1) that are eligible for a refund under this section
  is more than $50 million for the calendar year.
         (e)  The refund provided by this section does not apply to
  the taxes imposed under Subtitle C, Title 3.
         SECTION 2.  Section 313.021(2), Tax Code, is amended to read
  as follows:
               (2)  "Qualified property" means:
                     (A)  land:
                           (i)  that is located in an area designated as
  a reinvestment zone under Chapter 311 or 312 or as an enterprise
  zone under Chapter 2303, Government Code;
                           (ii)  on which a person proposes to
  construct a new building or erect or affix a new improvement that
  does not exist before the date the person applies for a limitation
  on appraised value under this subchapter;
                           (iii)  that is not subject to a tax abatement
  agreement entered into by a school district under Chapter 312; and
                           (iv)  on which, in connection with the new
  building or new improvement described by Subparagraph (ii), the
  owner or lessee of, or the holder of another possessory interest in,
  the land proposes to:
                                 (a)  make a qualified investment in an
  amount equal to at least the minimum amount required by Section
  313.023; and
                                 (b)  create at least 25 new jobs;
                     (B)  the new building or other new improvement
  described by Paragraph (A)(ii); and
                     (C)  tangible personal property [that]:
                           (i)  that is not subject to a tax abatement
  agreement entered into by a school district under Chapter 312;
  [and]
                           (ii)  for which a sales and use tax refund is
  not claimed under Section 151.3186; and
                           (iii)  except for new equipment described in
  Section 151.318(q) or (q-1), that is first placed in service in the
  new building or in or on the new improvement described by Paragraph
  (A)(ii), or on the land on which that new building or new
  improvement is located, if the personal property is ancillary and
  necessary to the business conducted in that new building or in or on
  that new improvement.
         SECTION 3.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 4.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1133 was passed by the House on May 7,
  2013, by the following vote:  Yeas 130, Nays 0, 4 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1133 was passed by the Senate on May
  21, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor